Nvidia CEO Jensen Huang says investors who are still questioning the value of artificial intelligence are missing the bigger picture. Speaking in Taipei this week, Huang argued that AI is already generating strong returns and that concerns about profitability are fading.
As reported by Bloomberg, Huang, while speaking at a private event attended by more than 300 representatives from financial institutions and wealthy family offices, said the debate around AI spending has shifted significantly over the past few months. “Only for the last six months has the ROI been completely reset. It is now insanely profitable,” Huang said.
The Nvidia co-founder argued that AI has already created trillions of dollars in value and suggested that investors who continue to doubt its returns are out of touch with reality. “Give me one example of some crazy person saying that now. They’re going to sound insane,” he added.
Addressing concerns about an AI bubble
Huang’s comments come as investors continue to debate whether the AI boom has pushed technology valuations too high. Many analysts have questioned whether companies spending billions of dollars on AI infrastructure and data centers will eventually earn enough revenue to justify those investments.
Huang rejected those concerns, saying the market is already seeing clear benefits from AI adoption. Over the past week, he has repeatedly spoken about AI’s potential to transform businesses, industries and entire economies.
Nvidia’s partners also stand to benefit
While promoting Nvidia’s role in the AI revolution, Huang also explained several companies that play important roles in the AI supply chain. He praised memory chip makers Micron Technology and SK Hynix, as well as Taiwan Semiconductor Manufacturing Co. (TSMC), which manufactures Nvidia’s advanced chips. Huang also mentioned Marvell Technology, whose shares surged after he suggested the company could eventually reach a $1 trillion market valuation.
AI boom is driving demand for capital
The rapid expansion of AI infrastructure is creating huge financing needs across the technology industry. Companies that supply Nvidia, Microsoft and OpenAI are raising record amounts of money to build data centers, secure power supplies and expand computing capacity.
“You need land, power, you need energy, but you also need financing,” Huang said. He added that wealthy families are becoming an increasingly important source of funding alongside pension funds and retail investors.
Huang says companies should stop blaming AI for layoffs
In a separate interview with Channel NewsAsia, Huang criticized business leaders who blame artificial intelligence for job cuts. He argued that the timeline does not make sense because AI has only recently become useful on a large scale. According to Huang, companies that announced layoffs years ago cannot realistically claim that AI was the main reason.
Huang called that explanation “too lazy.” Instead, he suggested that many layoffs were likely caused by factors such as over-hiring during the pandemic era and the high costs associated with building AI systems. Developing advanced AI requires enormous investments in cloud computing and infrastructure, putting pressure on company budgets.
Other AI leaders share similar concerns
Huang is not the only technology leader questioning the connection between AI and layoffs. Recently, Google DeepMind CEO Demis Hassabis also criticized companies that blame artificial intelligence for workforce reductions, saying it reflects “a lack of imagination” from leadership teams. Both executives argue that businesses should be more honest about the real reasons behind job cuts rather than using AI as a convenient explanation.